science

South African Futures Exchange

South African Futures Exchange is a science topic covered in the lgStudy science library. This page brings together a partial reference excerpt, illustrations, worked examples, real-world applications and a short study plan, so you can understand South African Futures Exchange rather than just read about it. In short: The South African Futures Exchange (Safex) is the futures exchange subsidiary of JSE Limited, the Johannesburg-based exchange. It consists of two divisions; a financial markets division for trading of equity derivatives and an agricultural markets division (AMD) for trading of agricultural derivatives.

Key takeaways

South African Futures Exchange belongs to science; place it in that map before memorising details.
Learn the definition first, then one example that makes the definition concrete.
Connect South African Futures Exchange to a quantity you can measure, compute or draw — that is where exam questions come from.
Reproduce the core statement of South African Futures Exchange from memory before moving on to harder problems.

Reference excerpt

The South African Futures Exchange (Safex) is the futures exchange subsidiary of JSE Limited, the Johannesburg-based exchange. It consists of two divisions; a financial markets division for trading of equity derivatives and an agricultural markets division (AMD) for trading of agricultural derivatives. Safex was formed in 1990 as an independent exchange and experienced steady growth over the following decade. In 1995 a separate agricultural markets division was formed for trading of agricultural derivatives. The exchange continued to make steady progress despite intensifying competition from international derivative exchanges and over-the-counter alternatives. By 1997 Safex reserves have grown sufficiently to allow a significant reduction in the fees it levies per future or options contract. Consequently, all fees were reduced by 50 per cent that year and in the charges on allocated trades were removed. In 2001 the exchange was acquired by the JSE Securities Exchange, with the JSE agreeing to keep the Safex branding. The exchange is a Self Regulatory Authority and exercises its regulatory functions in terms of the Financial Markets Control Act, 1989 and its rules. The Exchange, in turn, is supervised by FSB. -Tisetso

Historical development

See also Alternative Exchange Bond Exchange of South Africa Johannesburg Stock Exchange List of futures exchanges List of stock exchanges List of African stock exchanges South African Institute of Financial Markets

External links Safex, www.safex.co.za Safex Option Pricing, www.quantonline.co.za

Worked examples

Example 1 — a first encounter with South African Futures Exchange

Start with the simplest possible case. Write down what South African Futures Exchange claims or describes in one sentence, then invent the smallest concrete situation in which that sentence is true. In science, the smallest case is usually a single object, a single equation or a single measurement. Check that every symbol or term in your sentence has a meaning in that case.

Example 2 — changing one variable

Take the situation from Example 1 and change exactly one quantity: double it, halve it, or set it to zero. Predict what should happen to South African Futures Exchange before you calculate. Comparing your prediction with the result is the fastest way to find out whether you understand the idea or only the words.

Example 3 — an exam-style question

Typical questions about South African Futures Exchange ask you to (a) state it precisely, (b) apply it to given data, and (c) explain a limitation. Practise writing all three answers in under five minutes; the third part is what separates a full-mark answer from an average one.

Applications of South African Futures Exchange

In research: South African Futures Exchange appears in science research whenever the underlying quantities have to be modelled precisely. Papers usually cite it as a starting assumption and then explore where it breaks down.
In technology and industry: Engineering practice reuses South African Futures Exchange in design rules, simulations and safety margins. Knowing the idea lets you read a specification sheet and understand why the numbers look the way they do.
In the classroom: South African Futures Exchange is common in secondary-school and first-year university syllabi. It links to neighbouring topics Commodity exchanges, Companies based in Johannesburg, Finance in South Africa, so understanding it makes those chapters shorter.
In everyday life: Look for South African Futures Exchange outside the textbook — in sport, cooking, traffic, electronics or the sky above you. An example you found yourself is remembered far longer than one you were given.

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How to study South African Futures Exchange in 20 minutes

Read the reference excerpt below once, without taking notes.
Close the page and write down what South African Futures Exchange means in your own words.
Compare your version with the excerpt and mark what you missed.
Work through the three examples above with pen and paper.
Explain South African Futures Exchange out loud to somebody else — or to Teacher Smith in the lgStudy chat.

Frequently asked questions

What is South African Futures Exchange in simple terms?

Why does South African Futures Exchange matter?

Because it connects several science ideas at once: it gives you a definition you can apply, a quantity you can calculate, and a way to check whether a result is plausible.

How should I study South African Futures Exchange?

Read the excerpt, restate it from memory, then work through the examples and applications listed on this page. The five-step study plan above takes about twenty minutes.

What does this page cover?

It gives you a compact reference excerpt plus original lgStudy explanations, examples, applications and study material on South African Futures Exchange.